Mexico: Inflation slows further in March
April 9, 2012
In March, consumer prices added 0.06% over the previous month, which came in below both the 0.20% rise observer in February and market expectations of a 0.11% increase. The subdued reading was the result of a 0.55% month-on-month decrease in non-core consumer prices, in particular fruits and vegetables. In contrast, core consumer prices, which exclude agricultural products as well as energy and other government regulated tariffs, rose 0.24% in March. Owing to the subdued monthly print, annual inflation dropped from 3.9% in February to 3.7% in March, which marked the lowest level since November 2011. That said, inflation continues to linger above the Central Bank's permanent inflation target of 3.0%. The Central Bank expects inflation to remain between 3.0% and 4.0% both this year and next.